Validity of faceless assessment procedure challenged for jurisdictional AO intervention mid-remand, resulting in quashing of assessment for procedural...
Whether rights under a buyer/allotment agreement constitute a transfer taxable as capital gains was decided by applying the statutory definitions of capital asset and transfer, with emphasis on clauses covering part performance and transactions enabling enjoyment of immovable property. The Tribunal found the assessee held enforceable rights from allotment and that the executed agreement to sell effected a transfer within the statutory definition; consequently the receipts were assessable under capital gains. The assessee's claimed indexed cost exceeded consideration, producing an allowable long-term capital loss, and the appeal was allowed on that basis.
Whether rights under a buyer/allotment agreement constitute a transfer taxable as capital gains was decided by applying the statutory definitions of capital asset and transfer, with emphasis on clauses covering part performance and transactions enabling enjoyment of immovable property. The Tribunal found the assessee held enforceable rights from allotment and that the executed agreement to sell effected a transfer within the statutory definition; consequently the receipts were assessable under capital gains. The assessee's claimed indexed cost exceeded consideration, producing an allowable long-term capital loss, and the appeal was allowed on that basis.
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